tv World Business Today CNN October 21, 2011 1:00am-2:00am PDT
of libya when i was just 4 years to old, making him one of the longest reigning despots in history. the rebels caught and killed like a rat, same rebels in a filthy sewer. 42 years, gadhafi ruled through fear, torture and terror. tonight, not just libya, but the i'm zain verjee at cnn in london. the headlines this hour. for the first time in dpek candidates libya is free of its former lead ya, moammar gadhafi. his death sparked widespread celebrations thursday and they're being declared complete saturday. he was captured then fatally wounded in sirte. 2-year-old girl who was struck by two hit and run drivers then just ignored died. she lay in the street for 10
minutes before someone called for help. the little girl named yuyu had been cared for since she was injured a week ago but died friday morning. spain's welcoming an announcement by the basqe separatest group eta says it will day lawn arms. more than 800 have died in their decades long fight for an independent state. those are the headlines. i'm zain verjee. "world business today" starts now. good morning in cnn london. i'm nina dos santos. >> and good afternoon from cnn hong kong, i'm andrew stevens. the top stories this friday, october the 21st. >> after gadhafi, the rebuilding
of a nation, libya's new leaders looking to tapping billions of dollars worth of frozen assets. >> thailand's economy continues to take a battering as flooding hits more key industrial zones. and as we head into the final weekend of the rugby world cup, we'll take a look at how one dutch brewer is scoring his own success. moammar gadhafi is dead killed by a bullet fired by one of his own die-hard supporters. now the nation is embarking on an uncertain but gadhafi-free future. libyans celebrated the death well into the night the council says it will declare victory on saturday and begin working immediately towards a working government. it wasn't supposed to end like this. the interim leaders said they
wanted gadhafi taken alive. when revolutionary forces found him hiding in this drainage pipe. the transition prime minister said that gadhafi was killed in cross fire when some of his own fighters attacked the vehicle in which he was being transported. now that gadhafi is out of the picture attention has turned towards his money and the possible $150 billion worth of frozen assets that the new government is eager to get its hands on. we have more. felicia? >> it's staggering the amount of money out there under the gadhafi regime and the question is what the difference between the state assets and personal assets? people have told me with regards to the state assets the uncovering of them will be a difficult process because they'll have to petition to the courts this was under a tire rant's regime. these were criminal assets. when it comes to personal assets "so will we be able to recover any of those? we don't know where they are at this point because they're so
widespread. robert palmer from global witness can give us an idea of where they are. take a listen. >> the main way in which the libyans invested overseas is the libyan investment authority. this had $65 billion of investments. major banks butting goldman sachs, all held money for them or did business on their behalf. when gadhafi was welcomed back on to the political stage in the mid-2000s, the political elite were kick to open their arms to him. they all scrappled to get their hands on it. it's interesting to know the s.e.c. is reportedly investing goldman sachs for alleged bribery in relation to those funds. >> the global witness was able
to get a secretly leaked document back in september of 2010 and that's the latest information we have as to where some of these holdings were so let's take a look. in this document the assets were total of about $64 billion, $65 billion, just one account. we can take a look at what the cash and deposits were which was about $20 billion alone sitting in cash and then you can take a look at where it was widespread over many different countries. we can begin in italy where he had holdings of unicredit and eni totaling about $2 billion then take a look at some of the other countries, united kingdom, shares of pearson, i stress this was in september of 2010 and the latest information we have on this and in germany he owned a large stake in seaman's.
and in the united states, in spain, another 20 million and in the uk at lloyd's bank, 32 million and in the united states, another 20 million, charles, of bank of america, so his holdings were widespread throughout many different countries and that's what's going to be so difficult to uncover and let's face it, this isn't exactly the time to be selling any of your stock or bond holdings because the market has been so volatile. that's why they're held in different places throughout the world. it will take a long time to uncover and possibly years for the libyan investment authority to get this back into libyan hands. nina. >> felicia, thanks. for libyans there is an everyday reminder of the man who ruled them for 42 years. that's because his face is on their money. they have been buying wads of these notes, what we're seeing a
1 libyan dinar but thousands more than their face value and a moment in history. andrew? >> always looking for a way to make a quick dollar somewhere. the civil law in libya may be over but the economic fight is just beginning especially in the country's main industry which is oil. analysts say it will take years for the oil fields to return to full production. ramy inocencio is following this part of the story. >> there is word but let me just bring up this chart that i have here basically saying that the thought is libya is producing this much oil per day for a perspective, 350,000 barrels per day up from near zero and current market rates means libya can make $80 billion.
it's a far cry from the hundreds of billions it could make during the prewar measures. this may not happen until 2014, the view of deutsche bank and mckenzie woods and it's in tark contrast to what rebel officials are saying they think prewar production levels might be attainable by the end of next year. some opec countries are agreeing but depends on a lot of factors. for instance, for one, how badly damaged are libya's oil wells? right now that's unclear, but even if the wells weren't severely damaged a lack of continue maintenance means they could actually fail pretty fast. there's also not just damage to the wells but libya's transport infrastructure, the ports and roads that are vital to getting the oil to market. on top of that many of the trucks and offices are thought to have been looted.
if isn't that all to talk about there are physical obstacles and major political hurdles to overcome and, for example, in a research note from deutsche bank it points out libya has 140 tribes and factions and has to form a new functional government and that it has to put together a new oil ministry and pass stronger hydrocarbon laws to attract foreign oil -- one thing is for sure getting it flowing again is going to take a while. >> ramy, thanks for that, ramy inocencio. nina. >> let's turn to see how the markets are faring and what's affecting them. well, no price for guessing. the story remains the same, france and germany's leaders, it stills they're still at odds how to handle the debt crisis. eu finance ministers will meet in brussels ahead of the crucial summit sunday. it could still be quite a while
before we see anything concrete being decided. eu leaders just scheduled another summit to discuss the crisis further next wednesday. and in the meantime, protests have turned violent on the street of athens. greece's parliament passed tougher austerity measures. at the center of the fears is the failure of the euro. the single currency is faring, it's reversing some of its earlier gains as investors remain cautious as to whether eu leaders will actually work to solve the economic crisis. the dollar is currently trading at about -- sorry, the euro is trading at 1.3740. it mitt a nine-month low against the dollar and one strategist said yesterday it's amazing how the euro has managed to hold up strength against the dollar despite these concerns.
japanese yen more or less flat at 76.69. investors breathed a sigh of relief after the latest round of austerity measures. as you can see in europe in the meantime, they are trading and trading slightly higher. cac 40 up 0.89%. this is more or less how they fared. we had the measures putting on an interesting performance. if we look at the future markets they are more or less mixed. as andrew and i will stress we have another five hours or so before u.s. markets start trading. anything can happen between now and then. so mixed performance yesterday for the u.s. markets, broadly speaking the futures indicating a slightly positive start at the moment, s&p perhaps the laggard,
only modest gains there. andrew. >> nina, especially given the uncertainty around the eu summit. are we going to get a clear resolution on what's been happening in europe? here in asia markets mostly lower. doubts of that to the euro crisis persisting. japanese export numbers. exporters counting their blessings today. the government announcing plans to pump an extra 2 trillion -- roughly $26 billion -- into subsidies to counter the effects of their strong currency and keep japanese production facilities and jobs at home. well, certainly the exporters seem to like it. the exporters -- take a look, panasonic up 3%. mitt beneficiary was the only one down. they didn't do enough to bring
the nikkei out of its week of close for the week. but, you know, it's virtually flat. hong kong up just a fraction as well, very little movement at all and does sum up the uncertainty and caution ahead of what we can expect or the surprise or disappointments. and that's the reflection of the investors' minds in asia. >> after the break we'll stay with asia because as the floodwaters continue to rise in thailand, so too do the costs of this disaster and examining the impact and what ripple effects it may have on consumers around the world. let me tell you about a very important phone call i made.
when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp...
medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare.
and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. welcome back. well, residents of the thai capital bangkok are facing
further flooding. the waters are inching toward the city center. it's the worst the country has seen in half a century. paula hancocks filed this report a short time ago. >> reporter: the prime minister has told all residents to start moving possessions to higher ground. at least a meter from what it is at the moment. obviously there are still fears, significant fears that central business district and the inner city of bangkok could still flood. now, obviously that warning has come too late for this neighborhood. this is in the northern suburb of bangkok. you can see how devastated the area is. just a week ago we were driving down it road and there was no water here at all. now, local residents say this happened in just the last 24 hours. further into this neighborhood just a little earlier today and we were thigh high in water. there were people who were desperately trying to save any processions they could from the
ground floor of their houses and trying to move it to higher ground. some were evacuating and trying to take all their possessions on any boat they could find, anything that would actually float. so certainly for this neighborhood there is a lot of misery. it's likely that this neighborhood is a casualty of the government's decision to open some of the canals to try and ease the pressure of water that's coming down from the north. they announced this just recently that they were trying to regulate the flow of water through central bangkok. of course, this particular area has flooded significantly. there's not much confidence in the government here, i have to say, after the beginning of the week, the government said they thought it would be safe. they had to use a huge movement and many are having to fend for themselves and evacuate their own houses and whoever has a boat can trying to help. whoever doesn't have a boat -- we haven't seen many military trucks and residents say they haven't received aid at this
point. paula hancocks, cnn, bangkok. >> a look at the areas affected by the floods. karen mcginest is live at the cnn international weather center. karen, is there any letup in sight? >> it looks like we are starting to see the shift as far as heavy rainfall is concerned but nothing is going to make it improve because the water is already there. so we're looking at several more weeks where that rainfall is going to be fairly consistent, but we do have high pressure expected to move on in and drag that rainfall a little bit further towards the south. you have to remember that these river basins, it all just feed in from the north towards bangkok and lean towards the gulf of thailand have been running high. what we can expect over the next
24 to 48 hours, a continuation of the floodwaters across the region means we'll see situations like this. this man carrying a small dog and helping someone through the flooded waters, this is kind of a typical scenario that we've been seeing across most of the provinces of thailand. here several containers are floating in the floodwaters and they've crashed through a mud and sandbag bridge there. and they've sent out the rescue boats just to try to get people and their possessions off of some of the floodwaters there. well, the monsoon season is weakening and as i've mentioned this is typical. they're used to heavy rainfall but this has been extraordinary. some of the worst that they've seen in about 50 years. it's already claimed in excess of 300 lives. but all across southeast asia, it's affected about 30 million people with just in the bangkok area, about 600,000 people have
been affected from this over the last few weeks. back to you. >> okay, karen maginnis, thanks for that update. it's taking a heavy toll on the country's economy. when we come back we'll be examining the impact on the country's all-important manufacturing sector. do stay with us here on "world business today." imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need.
welcome back. you're watching "world business today" live on cnn. well, the bill for the damage caused by flooding in thailand is expected to top $2 billion but the financial fallout after the disaster could be far worse. businesses are in disarray after several major industrial areas were inundated by floodwaters. now the bangkok post is reporting another industrial park north of the thai capital has been totally flooded. a large number of them are stranded inside their factories. in the meantime, sony has been forced to delay the launch of a new camera and headphones after two factories were suspended. well, key components supplies in thailand had been hit hard by the record flooding. one of them is hana micro
electronics and the company's ceo joins us from bangkok via skype. richard, welcome back to the show. for what you've been seeing over the past 24 hours, do you think this is now a losing battle to save the center of bangkok from the flooding? >> good afternoon, andrew. no, i don't think it's losing battle. but obviously the situation looks very grim. you know, what we understand is happening now is this enormous amount of water is heading down from the north as it passes through all the industrial states including the one where we were situated and it's moving down into the central delta region of thailand and the government as i understand it is trying to push the water to the west and to the east to avoid the central part of bangkok. but we believe that the ability using these enormous pumps and
so forth is probably less than 50% of the capacity of the water that's heading down and, of course, you know, this is the huge -- >> it sounds like it will be flooded. >> it already started. when i went to work i have to cross a main artery heading from the north straight down the middle and that was already breaking its banks and i just got through. i'm a little concerned about how i'll get back because now i guess it will be that much higher. >> there has been some criticism of the government and their handling of this crisis so far. what do you think their response has been? has it been adequate? >> well, in a word, no, really but in reality, i don't think everyone was prepared for this. maybe that's a criticism. we should have been better prepared. i think more information from the irrigation department, you
know, could have been analyzed and understood. i just don't think anyone estimated or could really perceive the magnitude and scale of what's happened. >> you talked about misinformation. was that coming from the government or media. what sort of things have you been hearing? >> well, at the moment, the rumor mill is rife. various district areas are looking after themselves. there have been false alarms. there have been no alarms. and the guy who shouts the loudest gets the attention. there hasn't really been any understanding into how people concede a real sort of command and grip on how we'll organize this. and the other thing that exacerbates the situation is that there's always a situation
where you build a dam and on one side someone will be flooded and on the other you'll be dry. why should i suffer and you don't and the dams at night are broken and there's a lot of this tension and this fighting going on. it's happening right now as we speak on that dam i just -- canal i just spoke to you about. >> and the floodwaters continue to rise. thanks for joining us. richard han, ceo of hana. when we spoke to richard yesterday, he was saying that his factory just north of the capital had been flooded. he's lost about 35% of his business so far. they've relocated some operations into the capital but as you heard there it's very 50/50 whether he's going to keep that going, as well. very difficult situation. >> yeah, these floods having significant impact on the thai economy but also significant human cost as well following that on the show.
coming up next on "world business today," the business -- excuse me, the business of rugby. the game's money men. if you've just signed up for medicare or will soon, there's no time like the present to consider all your health insurance options. does medicare alone meet your needs? would additional coverage be better for you? well, now is a good time to take a look at an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. get started by calling for your free information kit and guide to medicare. as you probably know, medicare only covers about 80% of your part b medical expenses. the rest is up to you. a medicare supplement insurance plan helps cover some of it. that could save you up to thousands of dollars a year in out-of-pocket costs. and you can visit any doctor who accepts medicare patients. with medicare supplement insurance, you'll find a range of plans to choose from
to fit your needs and budget. there are no networks. no referrals to see a specialist. and you could get a pretty good idea what your out-of-pocket costs will be every month. plus, these plans travel with you anywhere in the u.s. don't let this time go by without considering if an aarp medicare supplement insurance plan is right for you. it's as easy as a phone call. rates are competitive. and these are the only medicare supplement insurance plans exclusively endorsed by aarp. remember, medicare doesn't cover everything. medicare supplement insurance plans help pay for some of the rest. you could save up to thousands of dollars a year in out-of-pocket costs. and you can choose any doctor or hospital that accepts medicare patients. an aarp medicare supplement insurance plan could be an option to get the coverage you need at a competitive rate. so don't wait another minute. be sure to call today.
from cnn in london, i'm nina dos santos. >> and i'm andrew stevens at cnn hong kong. welcome back. you're watching "world business today." now, let's take another look at how the european stock markets are performing 90 minutes into the trading session. we have gains but pretty modest ones as we head towards that
crucial eu summit which will take place on sunday in brussels. and cautious optimism as i say but a number of these markets only up about 0.31%. we have had much bigger swing, also concerns that perhaps eurozone leaders may not actually manage to solve the eurozone crisis on that self-imposed deadline of sunday because they've said they'll reschedule another meeting to take place, andrew, on wednesday so this does become an incremental story and why the markets are just tepidly reacting to it. >> yeah, you call it cautious optimism. i'd call it just caution if you look at how the asian markets finished the week. there are still concerns but a lot preferring to stay on the surveillances. shanghai was the biggest loser today down by 0.6%. as you see there, the main markets across asia pretty much flat this friday. going to be obviously a big weekend, investors watching very closely what happens in
brussels. meanwhile, in the u.s., traders are wall street breathing a sigh of relief after the greek parliament passed its latest round of austerity measures. mixed at the end as you can see there. nina. >> let's go to corporate news because news corp will hold its annual shareholders meeting in los angeles and rupert murdoch will be the subject of pretty fiery discussion. there's a big push for investors to vote for his dismissal along side his sons. many shareholders were unhappy with his performance as ceo since news of the phone hacking scandal surfaced. they might have a tough time making any changes at the top because the murdoch family owns just under 12% of the company, but nearly all of the shareholder voting rights giving them quite a big say at this annual general meeting. what's more, a key ally of the murder docks has indicated his
intention of voting in favor of keeping the board as it is. they'll face opposition from tom watson running a campaign against news corp since he learned of the phone hacking scandals. he purchased shares so he can address investors at the gathering. that is, though, andrew, we should stress if he is permitted to speak. >> that's a good point, isn't it? if he is he is claiming he has new information that news corp shareholders need to hear so certainly could be a fascinating meeting. now, as new zealand gears up for the world cup rugby final it's almost time for the game's money men to tally up the final figures. now, four years ago in france, the totals looked like this. $232 million in gate receipts, costs of $210 million. which resulted in a surplus of $22 million.
for the home nation france. now, take a look at new zealand. this year is pretty much a completely different picture. almost reverse, the country's prime minister has said he is expecting a loss and this is why, $214 million in ticket sales minus $245 million in costs which means that the country has to come up with $31 million. so who are actually the winners out of this? one is the irb, the international rugby board which manages the cup. in france four years ago they took $129 million in broadcast revenue, $88 million in tournament fees, 44 in sponsorship and 57 million in other commercial deals. now, take away $125 million in costs and you are left with a surplus of $193 million. not bad, actually and think about this, nina. most of it goes back into developing the game.
now, over the past 15 years the dutch brewer heineken has poured more than $130 million into sponsorship for world cups and they announced a partnership with the 2015 tournament in england. alex thomas has more. >> in most people's opinion this rugby world cup has been a storming success so perhaps no surprise one of its major sponsors heineken have signed up for more and hans eric can tell us exactly why. you're extending your relationship. tell us why heineken wants to remain involved. >> we've been involved since 1995 and it's now a global success and been with the world cups and growing and growing. if you remember the first i in '87, only 600 thousand people watched it worldwide. we're now talking millions around the world. the sport is growing, close to what heineken stands for, internationals, premium and it
works. there's why you continue your sponsorships. >> are you surprised by how much the tournament has grown. >> if you talk to the player, i think everyone is surprised. it's good on television, growing worldwide. as an international premium beer brand you want to be with this. that's what we did for the rugby world cup. we created a whole theme this is a game about the coach and heineken and sharing the stories. we have four -- we have six heineken baelds going around the world telling stories, people enjoy it. we have over 500 guests and people want to listen. on digital over a million people watched the this is the game show. that's fantastic numbers. >> how much money is rugby getting out of heineken. >> since 1995 heineken has invested eed more than 100 mil
in rugby. on the flip side what's important as well. heineken does rugby because we are 50% of our volume is in countries that, for example, qualify for the rugby world cup so the business is the art. people know that heineken is a rugby sponsor so we're talking to our loyal consumers, for example, if you change the champions league where we're building the brand. >> two very different sports with different sets of fans. >> the champions league, what that does is building the brands this places where we are not and can -- great platform to engage with our consumers where we are stronger. rugby know heineken is a sponsor. people even talk about the heineken cup and know the stories about the heineken cup. the one in 2003 in sydney people still talk about the bar we created through the final. even if you see what we do here live at the fan zone and people talk and share the stories.
>> you think new zealand has benefited from it and some critics say they're a foreign company but presumably beer sales help the local economy too. >> not only that if you were to go to the park, everybody walks in and says, wow, this is a whole different level. even others have different standards and people said why dozen eden park look beautiful? those are the member roobl experience. i hope people live it today when they're 85 still talking about do you remember when the world cup 2011 and that's where we were. >> so the big final is, of course, on sunday. the all blacks meet france but right now australia and wales are battling it out for the third spot. alex, what's it looking like? >> reporter: wales just taken the lead against australia in
the second half of the bronze final as they call it here at the rugby world cup, you're quite right. i'm sure you're interested but all eyes here on sunday night's final between new zealand and france, a repeat of 1987 but the economic side is fascinating too. we heard from heineken signed up for another four years. mastercard, another rugby world cup sponsor says the last weekend will generate a windfall and visitor numbers up till the end of september have been registered at 80,000 well on target for the organizers' 95,000 they hope to come here which compares to 300,000 for the world cup in south africa. it shows it's not just a successful tournament in terms of atmosphere but the facts and figures are there to back it up too. >> if the all blacks win it will be the perfect turn fomeourname
new zealand. australia losing against wales at the moment. well, there's also a competition of a different kind brewing at the rugby world cup. a new zealand beer brand. you can see the slowing for yourself. new zealand is a long way to come to drink a dutch beer. more than 18,000 kilometers if you come from holland. cheeky stuff but seems to be working. that's it for this edition of "world business today." thanks for joining us. i'm andrew stevens in hong kong. >> and i'm nina dos santos in london. we'll be back for the second edition in about four hours time. if you can't join us, we wish you a happy weekend. good-bye. who need
imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today.
from tunisia to egypt the winds of change have swept the region despite the political turmoil it has been grappling with the impact of the arab spring on an economic level. unemployment is rising, tax revenues are down and costs are mounting as we found out, change can be very expensive. >> reporter: the arab spring changed the political landscape but come at a heavy cost. the worst affected countries including libya, egypt and tunisia have stacked losses of $56 billion in terms of income and extra spending and seen a drastic reduction in revenues because for many of these countries, their economies are at a virtual standstill. yemen, for instance, has seen its revenues fall sharply down 77%. libya has seen revenues drop by
84%. funding for the recovery process for these countries is needed urgently. now, in september, the international community including the g-8, some of the wealthier arab countries and institutions like the world bank promise $38 billion in financing for egypt, tunisia, morocco and jordan. countless other pledges were made back in may but despite the promises, much of the money has yet to be delivered and the imf says the cost of recovery for those north african economies is more than $160 billion over the next three years. leone lakhani. abu dhabi. >> according to the international labor organization, youth unemployment rates in the region are among the highest in the world for those between the age of 15 and 24. in 2010 youth unemployment hit
25%. that is double the global average of around 12%. the world bank says that in order to tackle this problem, 100 million jobs are needed by the end of the decade. i sat down with three business and policy makers and asked them what type of reform is needed to overcome the problem of the joblessness. >> for the past decade it was probably characterized with a lot of attempts to do reform and maybe it triumphed over the actual implementation of enough scaled up initiatives to create the necessary impact. if we look back, we had what was missing and the ingredients is you needed a comprehensive reform package and you needed the political will. you needed the tools to do the consensus building on the different tracts so you get them implemented and needed it to be seen through. >> some would argue that this
cozy system of the top 2% in business and government in the past that were unwilling to break that mold and let it trickle down and create a middle class. >> it's true. i think this is, you know, there's evidence, of course, that the top approach has failed because the government and thin margin of the private sector is trying to come up with all the solutions without involving the base. it did not work. it did not work in any of our countries and the pressure wasp building, egypt as an example until it exploded. so now the direction should completely be different going from bottom up and involving the masses. >> egypt is a huge concern. almost rolling back the clock. on privatization then you have religious tensions and the world almost was watching to see will the elections go well. too much on the sidelines and egypt could implode with the population of more than 80 million people?
is that really the biggest danger here. >> i think in the indication of egypt like in the case of tunis or other countries we have to be patient and understand what is happening. the transformation that is taking place, what it's trying to achieve, this is not just the job of the outside world or the responsibility, also the responsibilities of egyptian elites and those in charge to communicate the right message. >> do you agree? are they talking too much to the people on the ground with knee-jerk reactions? is that your view. >> i think you have to break up the region into different countries. they have to focus a lot now on the political faction and why they're doing an evolutionary tract they have the basics of the institutions, they juice need to actually adopt god governance across the entire system so we can create systems that are sufficiently capable of
defining the road map in a legitimate manner using a bottoms up approach and then seeing through the implementation to create the impact to do that. there are no magical solutions. i think the lesson is we cannot do economic reform in isolation and vice versa. >> i think the mistake in egypt, there is so much focus on the political reform ignoring the economic aspects. egypt is a place where we are seeing some negative setbacks vis-a-vis some of the images done by the previous government which is a mistake. there were mistakes committed in the privatization process and corruption for sure. that doesn't mean that privatization is the wrong way to go. there are needs for immediate economic measures because the situation is debilitating and it's now at risk and meanwhile, during this year you cannot just
ignore the huge unemployment, the foreign capital that's leaving the country. there is a huge need for foreign currency. you cannot ignore these issues. >> isn't that the biggest question? you talk to egyptian business people they say things are seizing up. this is the biggest problem and spillover effect from north africa to egypt. you would agree. >> the way egypt go the way other countries will go. i'm in favor of accelerating the political process of reform if only because it is only when you have that political legitimacy that you'll be able to engage in the full-scale economic restructuring that is needed. only a legitimate politically strong egyptian government will be able to reverse some of the setbacks we have seen recently. that is a reason why we want to move out of this trap now of little happening. no movement. too much chaos without any process on the way. >> our special mme roundtable. to hear more visit our website,
as high unemployment continues to grow one industry that could pave the way is animation production. there is a relative newcomer in the region but as kim found out it is slow gaining a foothold throughout the middle east. ♪ >> aaagh! >> ships like this one. >> reporter: "ben and izzy" is the tale of two byes, an
american and a jordanian. the animated series is jordan-based rubicon's most famous export seen throughout the region but they have plans to expand to a worldwide market. >> welcome to the newly completed desert equestrian village of abu dhabi. >> not a western company and i honestly believe that good stories are global. it doesn't matter where they come from. >> reporter: the middle east is a relative newcomer when it comes to producing its own animation content and competition with markets in india and asia is fierce. one of the most famous of these local cartoons is called freeze created by amarati mohamed. >> it was always a given that i wanted to go back so i felt that it was very important to take what i learned from the states
and a role market and try to develop it. i did not have high hopes but i was wishful that i would have at least a say in the bisson. it is basically the story of four grandmothers living in a secluded neighborhood and it's basically a cultural story of untypical heroes. i wanted a medium that can communicate culture in a modern way. >> reporter: communicate they did. it is one of the most popular shows in the emirates but he says animation is expensive. his production costs over the past three years have loved around $14 million. costs are usually made up in merchandising however rampant piracy eats into profits. >> the difference between what is fake and what is not fake and there is little done by the authorities to counter that. we do pay huge amounts of trademarking fees, one of the highest in the world but when it comes to fighting this, we're
seeing some work done but not as much as we hoped. >> reporter: the industry is facing another financial hurdle. lining up enough regional investors. >> the animation industry is very new to investors and venture capitalists in our region. it now is picking more attention in the past five years, things change drastically in the middle east. really looking for knowledge, economy, industries as opposed to real estate or manufacturing. >> reporter: the animation industry hoping to draw some attention to what they see as a new hot property. >> ta, ta, ta. >> reporter: kim kelaita.